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Information and public services for the Island of Jersey

L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

Jersey Meteorological Service Review: Approval of recommendation

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A decision made on 20 December 2012:

Decision Reference:  MD-PE-2012-0132

Decision Summary Title

Approval of Jersey Meteorological Review Summary Report Recommendation

 

Date of Decision Summary:

17.12.12

Decision Summary Author:

 

Business Manager

Decision Summary:

Public or Exempt?

 

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

n/a

Written Report

Title

Jersey Meteorological Service Review Summary Report

16 Dec 2012

 

Date of Written Report:

16.12.12

Written Report Author:

Business Manager

Written Report :

Public or Exempt?

 

Public

Subject:  Approval of Jersey Meteorological Review Summary Report Recommendation

 

Decision(s): 

The Minister for Planning and Environment has approved the Jersey Meteorological Service Review Summary Report recommendation that the Jersey Met Service is retained on island and within the States of Jersey (Department of the Environment) and the service is enhanced.

 

Reason(s) for Decision:

The Minister for Planning and Environment requested that a review of the Jersey Meteorological Service (Jersey Met) be undertaken in order that a recommendation can be made as to how the service should be provided in the future.

 

Resource Implications:

None

Action required:

Recommendation to be implemented by Department of the Environment

 

Signature:

 

Deputy R C Duhamel

Position:

 

Minister for Planning and Environment

Date Signed:

 

Date of Decision:

 

Hide report
Jersey Meteorological Service Review: Approval of Recommendation

Jersey Meteorological Service Review Summary Report

16 Dec 2012

 

 

 

Purpose of the Report

 

The Minister for Planning and Environment requested that a review of the Jersey Meteorological Service (Jersey Met) be undertaken in order that a recommendation can be made as to how the service should be provided in the future.

 

Background

 

This 2012 review follows earlier reviews (including: Working Party review 1999 and OXERA review 2002) and observations by the Comptroller and Auditor General (C&AG) in 2008 and Public Accounts Committee in 2010. These earlier reviews included recommendations on changes to the Jersey Met set up and operations, together with comments on how the service might be provided in the future.

 

The 2012 review looked at how the updated operation of the Jersey Met meets the needs of Channel Island users of the service and the following four options for the future delivery of the service.

 

  1. Retain and maintain existing Jersey Met service
  2. Privatise Jersey Met
  3. Close Jersey Met and purchase Met service
  4. Retain and enhance the Jersey Met service

 

The review has included customer, media and staff feedback and external validation by BDO and the output from the review is included in the final BDO Jersey Meteorological Service Review report – April 2012.

 

Key Findings

 

  1. Government has a legal requirement to provide meteorological warnings and information. Jersey Met has responsibilities outlined in the Emergency Measures Plan 2011 (amended August 2011) produced by the Emergencies Council under the Emergency Power and Planning (Jersey) Law 1990.

 

  1. The provision of a basic level of public meteorological service is generally seen as a governmental responsibility. Across Europe, a minimum level of public service is provided free of charge, although the cost to the taxpayer is minimised wherever possible by the receipt of income from commercial organisations.

 

  1. Global weather forecasting is a highly competitive market and limited opportunities exist for a Jersey based service to sell services to a wider market and increase the income received.

 

  1. Public meteorological services are generally provided to or on behalf of government for the public good, grouped into five areas: Public safety, Safety at sea, Public information, Public education and Advice to government.

 

  1. It is estimated that opportunities to reduce net costs to the States of Jersey by privatising Jersey Met or closing Jersey Met and purchasing Met Services are minimal, if they exist at all.

 

  1. Many of the Working Party recommendations have been implemented, and Jersey Met now forms part of the Department of the Environment rather than part of the Jersey Airport

 

  1. Between 2001 and 2011 Jersey Met has gone through a period of significant change in both its operating structure and financial profile, including:

 

  1. Full Time Staff (FTE) has reduced from 21 to 15 persons (down 29%). The 15 FTE retain expert meteorology skills and contribute to the Jersey economy.

 

  1. Gross revenue expenditure per annum has reduced from £1.84m (2001) to £1.34m in 2011 (down 27%).

 

  1. Net revenue expenditure per annum has reduced from £1.19m (2001) to £630k in 2011 (down 47%)

 

  1. The 2012 Jersey Met Gross revenue expenditure Budget of £1.3m is offset by Income of £700k, and results in a Net expenditure of £600k. Staff costs account for 80% of the total expenditure.

 

  1. Capital expenditure of c£600k is required by end-2014. This has States of Jersey approval.

 

  1. Jersey Met is the official forecasting centre for the Channel Islands and is required to adhere to Civil Aviation Organisation international standards, and offers the following key services:
  • Channel Islands Public Met Service
  • Channel Islands Shipping Forecast
  • Jersey Airport Aviation Meteorological Service
  • Climatological services for Jersey
  • Gale/Strong wind warning on behalf of Jersey Harbours

 

  1. In addition to providing a public meteorological service in Jersey, Jersey Met provides services to three core customers. These are Jersey Airport (Aviation Meteorology), Guernsey Airport (Aviation Meteorology) and the States of Guernsey (Public Service Meteorology).

 

  1. The Jersey Airport Service Level Agreement (SLA) expires on 31 Dec 2019. It is believed that Jersey Airport took into account potential UK prices when it negotiated and agreed the new eight year Service Level Agreement with Jersey Met in 2011.

 

  1. The Guernsey Airport and States of Guernsey Service Level Agreements expire on 31 Dec 2013. These are being reviewed and the intention is to bring the service end dates of these agreements into line with the Jersey Airport SLA (i.e.: 31/12/2019)

 

  1. Channel Island customer feedback (Island Analysis survey) and Media (CTV, JEP, BBC and Channel 103) interviews all support maintaining a local Jersey Met and associated expertise. Local, immediate and accurate weather information is very important to the CI media and other customers, although all believe improvements to the existing service can be made.

 

  1. 84% of CI residents surveyed (Island Analysis report) rated the importance of up-to-date weather information as very important (32%) or important (52%).

 

  1. Jersey Met works closely with key customer groups (States departments, ports, media, industry) in providing weather services, providing bespoke solutions where possible, often on a free of charge (e.g.: to media channels) or contra fee basis (e.g.: to other States departments).

 

  1. The States of Jersey benefits from the receipt of an annual fee from Eurocontrol in relation to coordinating and planning air traffic services in the Channel Island Control Zone, including an element to the provision of aviation meteorological services, currently provided by the Jersey Met team. It is understood that Jersey Airport receives this fee in full from the States (c£3.5m per annum in 2002). Changes to the Jersey Met need to be considered in light of the potential impact on the ability of Jersey Airport to continue to provide the service to Eurocontrol, and the States to continue to benefit from this income.

 

  1. Appendix 1 (taken from May 2012 BDO report) summarises each future delivery option of Jersey Met and the financial impact of each.

 

  1. Appendix 2 (taken from May 2012 BDO report) provides a visual representation of the Jersey Met stakeholders.

 

 

Recommendation:

 

It is recommended that the Jersey Met is retained on island and within the States of Jersey (Department of the Environment) and the service is enhanced (Option 4) as follows:

 

-          The service offering is developed to better meet Channel Island customer needs

-          Online is developed as a key delivery channel and method of collecting payments for chargeable services

-          Jersey Met is utilised as an enabler to support the States of Jersey gov.je and MyGov use and roll out

-          On-going Jersey Met costs are maintained within existing Department of Environment agreed Medium Term Financial Plan limits

-          Opportunities continue to be explored to improve the efficiency and/or effectiveness of Jersey Met and to generate new or increased revenue

 

Key considerations supporting the recommendation:

 

  1. Developing an enhanced on island Jersey Met service, and maintaining local expertise and support, best meets the needs of key customers and the provision of an immediate and accurate range of CI meteorology services.

 

  1. It is estimated that opportunities to reduce net costs to the States of Jersey by privatising Jersey Met or closing Jersey Met and purchasing Met Services are minimal, if they exist at all.

 

  1. Losing direct control of Jersey Met operations following privatisation or closing down of Jersey Met will have a negative impact on Jersey’s capacity to be self-sufficient and ability to respond to Civil or other emergencies. This is deemed too high a risk to take.

 

  1. The costs of maintaining a local Jersey Met service have reduced significantly in recent years. Net revenue expenditure has reduced greatly (47%) in the last 10 years from £1.19m (2001) to £630k in 2011.

 

  1. Maintaining an on-island Jersey Met service preserves locally managed and controlled technical expertise and offers current and future employment opportunities in scientific roles. Local employees also provide broader economic and social benefits to the island.

 

  1. It will be extremely difficult and expensive for Jersey to re-establish a locally controlled Met Service following the privatisation or closing down of Jersey Met, if this is considered necessary.

 

  1. Developing online met services supports the States of Jersey strategy to migrate customers to online services and the increased use of gov.je and subscription services via MyGov. Weather information can be used to drive increased usage of States of Jersey online services.

 

  1. Maintaining a local Met Service supports Working Party conclusion: “Whilst forecasts for the Channel Islands could be provided by the United Kingdom or French Meteorological Services, the working party were of the opinion that, having regard to the variable nature of local weather, such forecasts would not have the immediacy nor the accuracy that would be acceptable to those in the Channel Islands who rely upon the forecasts, ether for commercial reason or for the safety and general benefit of the public.”

 

 

 

Written by:  Business Manager, Department of the Environment. 12/12/12

 

Approved by:  Chief Executive Offer, Department of the Environment. 18/12/12

 


Appendix 1

 

BDO Report Summary of Future Delivery Options of Jersey Met and the Financial Impact of Each

 

 

Key points

Financial Impact

Option #1:

Retain & Maintain existing Jersey Met service

  • Compliant with obligations to provide a Met service and supported by Working Party conclusion in 1999
  • Preserves status quo with regard the role of Jersey Met and the CICZ; CICZ annual income to the States (£3.5m in 2002)
  • Employs 13-15 staff; maintains local Met expertise
  • Net cost of service to Department of the Environment of £600k per annum (2012 budget)
  • Jersey Met will meet its CSR target (future opportunity to reduce working hours and reduce staffing costs?)
  • Capital expenditure of c£600k required by end-2014

Option #2:

Privatise Jersey Met

  • The Department previously advised the C&AG that:

“There would be no saving. The implication of privatisation is a Met Service that can no longer deliver the highly specialised or dedicated service currently enjoyed by Channel Islanders.”

  • Global weather forecasting is a highly competitive market, and a privatised Jersey Met would struggle to compete to sell services in that wider market
  • Probable loss of local employment and expertise
  • Net cost of service expected to increase (i.e. >£600k)
  • A privatised service (possibly as a States-owned trading entity) would attract new annual charges for core forecast data of £250-750k (currently free of charge)
  • Limited opportunity to develop significant additional income in the local CI market
  • Capital investment of at least £500k to £1m required to compete in a wider marker (NZ Met spent >£30m), but no guarantee that business model would succeed

Option #3:

Close Jersey Met and purchase Met services

  • Purchasing Met services inconsistent with Working Party conclusions, and C&AG review which noted

“… strong arguments for ensuring that there is a local weather forecasting service within the Island”

  • Loss of local employment and expertise (anticipated local requirement of 4 FTE versus 15 currently)
  • Gross cost of public and aviation meteorology estimated at £1.46m versus 2012 budget of £1.3m (absent a formal quote)
  • Net cost of service £680k per annum (estimated) for the Jersey public meteorology service (versus £600k currently)
  • Ongoing capital and annual costs of maintaining the Jersey Weather Radar will remain under this option
  • Cost incurred by Jersey Airport for forecasting and observing expected also to rise from £370k to c£550k

Option #4:

Retain & Enhance the Jersey Met service

 

  • Preference based on findings of Island Analysis survey, media feedback and Jersey Met staff workshops
  • Delivery of enhanced service within existing budget on a phased basis, e.g. development of delivery channels for local Met data (internet, social media etc)
  • Enhance the ‘free service’ data with minimal loss to existing public service income (develop new income)
  • Provides on-Island Met expertise and service resilience
  • Maintain net cost of service at £600k per annum
  • Utilise States Web Services team to enhance the web offer with minimal external costs (link to gov.je and potentially to jersey.com)
  • Seek to develop new income streams (e.g. corporate sponsorship) based on enhanced delivery channels
  • Measure and report user statistics and service quality to demonstrate progress and benefit to Islanders

 

Appendix 2

 

Visual representation of the Jersey Met stakeholders.

 

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